[Hyundai Way Secret①] "Hyundai Motor's Electrification Strategy, Wiser than Toyota"

Responding to Market Demand with Diverse Portfolios
Most Balanced Growth Among Top 3 Manufacturers in H1
Additional EREV Declaration... Equipped to Leap to No.1
The Only Manufacturer Capable of Producing All Fuel Type Models

Hyundai Motor Group has been found to have the most diverse portfolio of vehicle types among the global top 3 automotive groups, continuing stable growth. This growth trajectory aligns with its mid- to long-term strategy, the ‘Hyundai way,’ which flexibly responds to market conditions while promoting electrification transition.

On the 4th, Asia Economy analyzed the sales data for the first half of this year from the global top 3 automakers. Hyundai Motor Group showed the most balanced distribution in sales across various fuel types, including electric vehicles (5.6%), hybrids (13.7%, including plug-in hybrids (PHEV)), and hydrogen fuel cell vehicles (0.04%). Adding the range-extended hybrid (EREV) currently under development to the lineup makes Hyundai Motor Group the only manufacturer worldwide capable of mass-producing all types of fuel vehicles currently on the market.

Toyota Lacks Electric Vehicles, Volkswagen Lacks HEV Lineup

Toyota Group, which sold 5.16 million units in the first half of this year, had a relatively high proportion of eco-friendly vehicles such as internal combustion engines (60%), hybrids (38%, including PHEV), and hydrogen vehicles (0.02%), but its electric vehicle share (1.4%) was significantly low. Volkswagen Group, which sold 4.35 million units, had the highest electric vehicle share (7%) among the three, but PHEV sales accounted for only 3%, and it had no conventional hybrid lineup at all.

Hyundai Motor Group’s eco-friendly vehicle sales exceeded 20% of total sales (3.62 million units). The balanced expansion of electric vehicles (5.6%) and hybrids (13.7%, including PHEV) was notable, along with a hydrogen fuel cell vehicle lineup (0.04%). Recently, Hyundai declared strengthening hybrids as an alternative to overcome the electric vehicle ‘chasm’ (temporary demand drop), establishing a foundation to leap to the top global automaker position.

Experts evaluate that among the global top 3 automakers, Hyundai Motor Group has the most stable eco-friendly vehicle portfolio. Toyota has focused on hybrids, Volkswagen on electric vehicles in their electrification strategies, but Hyundai Motor Group has been recognized for product competitiveness in both hybrids and electric vehicles, steadily increasing its market share.

Hans Greimel, Asia editor responsible for Korea-China-Japan industry analysis at automotive news media Automotive News, said in an interview with this publication, "In an uncertain situation where it is unknown which technology will be the ultimate winner, Hyundai Motor Group’s diversified investment strategy is wise," adding, "Hyundai has a strong brand with a diverse powertrain lineup that allows rapid transition according to demand changes."

Hyundai Responds Flexibly to Market Demand

At an investor briefing on the 28th of last month, Hyundai announced it would pursue the ‘Hyundai Dynamic Capabilities’ strategy to respond to rapidly changing market conditions. The ambition is to quickly switch to hybrids amid short-term electric vehicle demand slowdown while maintaining market share in the electric vehicle sector where it has secured technological capabilities.

To this end, Hyundai declared the development of a new hybrid model, the EREV, and pledged to double the number of models applying the existing hybrid system from 7 to 14. Genesis, which initially planned to skip hybrids and sell only electric vehicles from 2025, reversed its stance to apply hybrids to all models starting in 2027.

Hyundai Motor Group has built a distinguished track record in electric vehicle technology development, including high-performance electric vehicles, V2L (bidirectional charging technology that allows vehicle power to be used externally), and 350 kW-class ultra-fast charging technology. Hyundai’s high-performance electric vehicle Ioniq 5 N received the World Car Awards’ ‘World Performance Car of the Year’ award, recognizing its technological prowess, and Hyundai Motor Group was the most proactive and pioneering among all automakers in adopting V2L technology. Going forward, Hyundai plans to expand V2L technology application to hybrid models as well.

Editor Greimel said, "Hyundai’s biggest strength is that it developed and provided a successful electric vehicle technology package to consumers earlier than competitor Toyota," and evaluated, "It not only responds quickly to demand changes but also has the ability to flexibly switch from one technology to another."